- Crypto AG hopes to become the country’s first cryptocurrency investment bank.
- An approval by FINMA will boost the development of crypto banking.
- The company is enhancing its technological infrastructure and double its headcount.
Hong Kong’s investment firm Summer Capital has thrown its weight behind Swiss Crypto startup SEBA Crypto AG, which hopes to become the country’s first cryptocurrency investment bank. The move has the potential to help push cryptocurrencies to the mainstream.
Crypto Forays into the Mainstream
Without giving details of the amount of money that Summer Capital brought on board, a report by the local South China Morning Post (SCMP) showed that SEBA Crypto AG, which is awaiting approval of its license application in the second quarter of 2019 to become a banking and securities dealer by the Swiss authorities, raised $100 million last month.
An approval by the Swiss Financial Market Supervisory Authority will boost the development of crypto banking and enable SEBA to extend its services to Asian blockchain companies that are not happy with the traditional banking systems. Summer Capital’s spokesperson jack Chung stated:
“We believe we could support SEBA’s plan to expand into Asia, a region where digital asset trading and blockchain projects have been flourishing.”
The company revealed that it already has plans to enhance its technological infrastructure and double its headcount from the current 20 to 55 by the end of the first quarter of 2019 to prepare for the FINMA licensing. SEBA announced that it will offer digital asset custodial services besides crypto banking services. SEBA chief executive Guido Buhler said:
“It has been tough for blockchain start-ups to grow their businesses as they are unable to access the traditional banking system. We are building infrastructure to allow companies to pay salaries in cryptocurrencies and bridging the disconnect between fiat and cryptocurrency payment.”
As SEBA Crypto AG and others wait for FINMA’s approval to offer full banking services to cryptocurrency operators soon, Switzerland’s financial regulator has approved the country’s first crypto asset manager.
On the Cusp of Disrupting the Traditional Banking Mechanism
Crypto Fund, which has now been licensed to offer investment advice to institutional clients, will operate on the same level as the traditional asset manager in Switzerland. The company that operates from Switzerland’s “blockchain valley” of Zug had already been given limited freedom in June to distribute offshore-based cryptocurrency funds. Crypto Fund CEO Jan Brzezek said:
“The FINMA authorization for Crypto Fund is a key step for our clients and investors and for us in becoming a leading provider of digital asset services worldwide.”
The Tuesday, October 9, 2018 announcement now gives the firm room to offer a wider array of investment products that will track cryptocurrencies and funds in the country. The landmark decision shows that cryptocurrencies are slowly but surely breaking through to traditional banking.
